NorthEast Cheese

Cheese prices on the CME Group declined Tuesday with barrels decreasing $0.0375 to close at $1.6000, while blocks fell $0.0275 to close at $1.6600. Cheese prices on the CME Group have been on a downward trend over the last 4 sessions with barrels having a cumulative decrease of $0.0725 and blocks $0.0500. Increased milk production continues to keep Northeast cheese operations on 6-7 day production schedules. Cheese demand has improved following increased retail promotions ahead of the upcoming Super Bowl. Current cheese pricing is conducive for increased volumes of cheddar to be moved into aging programs. Exporters are becoming increasing concerned about the unresolved labor contract with Longshoremen as the strike deadline date of February 6 approaches. Cooperatives Working Together (CWT) has accepted requests for export assistance to sell 3.814 million pounds (1,730 metric tons) of Cheddar and Monterey Jack cheese. The product will be delivered January through June 2013. The latest NASS Cold Storage report shows stocks of natural cheese in cold storage as of December 31, 2012 totaled 987.9 million pounds, up 5% compared to one month ago and down slightly from one year ago. A majority of the holdings are in the form of American cheese (61.2%) totaling 604.9 million pounds, up 4% from one month ago, but 1% less than one year ago. The next highest natural cheese holdings in cold storage are in the form of Other Natural Cheese, (35.3%) totaling 348.5 million pounds, 6% more than one month ago, but 1% less from one year ago. Swiss cheese accounts for 3.5% of holdings at 34.5 million pounds, up 12% from one month ago and 25% more than one year ago.WHOLESALE SELLING PRICES: DELIVERED, DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)